Transfer of passenger name records (PNR):
The Commission adopts two initiatives to comply with the Ruling of the European
Court of Justice on the transfer of PNR to the United States of
America

The European Commission adopted today two initiatives to put a legally
sound framework in place for the transfer of PNR data to the United States.
These initiatives are the first European answers to correct the legal basis for
the Agreement with the US that was struck down by the European Court of Justice
on 30 May 2006. The Court ruled that the Article 95 EC-Treaty was not an
appropriate legal basis for the transfer of PNR data which are essentially
aiming to ensure public security and activities by public authorities in areas
of criminal law. .

As the Agreement with the United-States remains in force under international
law for a period of 90 days after it is denounced by either Party, the
Commission recommends to the Council to terminate the Agreement with the US
before the end of this month.

At the same time the Commission asks the Council for an authorisation to open
negotiations for an Agreement with the United States of America on the use of
PNR data to prevent and combat terrorism and transnational crime, including
organised crime.

With the adoption of these initiatives only two weeks after the Court ruling,
the Commission underlines its willingness to fully respect the Court's judgement
and its commitment to continue the fight against terrorism while respecting
fundamental rights and freedoms.

The Commission is working closely with the other Institutions involved in
order to ensure full compliance with the Court ruling. The Commission recommends
that the Commission and the Council act together to denounce the current PNR
Agreement with the US. Once notified through diplomatic channels the Agreement
will be terminated 90 days after its notification to the United States.

At the same time the Commission recommends to the Council to give an
authorisation to open negotiations for a new Agreement with the US on the basis
of Art. 38 of Title VI, Treaty on European Union. Title VI (3rd Pillar)is the
correct legal environment to conclude an International Agreement for matters
dealing with public security and criminal law matters.

The Commission is in favour of an approach whereby the current Agreement is
replaced by a new one having a correct legal basis in compliance with the ruling
of the Court. The content of the current Agreement has not been criticised by
the Court and should therefore continue to offer the same level of safeguards
regarding the legal certainty for air carriers, the respect of Human rights and
the purposes for which PNR data may be used. To protect public security and the
economic interests of European air carriers this new Agreement should replace
the current Agreement when it will be terminated, i.e. 30 September 2006.

The Commission wanted to launch these initiatives without delay and will
continue to work with all the parties concerned over the period permitted by the
Court to put in place the measures required by the ruling.

In that respect the Commission counts on the competent authorities of the
United States to ensure commonly a high level of security, whilst continuing to
ensure the smooth functioning of the commercial activities of air carriers
without lowering the data protection standards which are currently in place.